1. Financial Objective
The choice between a credit card and a personal loan depends on your financial objectives. If you require funds for meeting daily expenses or monthly bills/ expenses that need to be paid by a due date such as paying for utilities, rent, etc. you can opt for a credit card. If you need capital for long-term needs such as expanding and deploying advanced accounting software, opening a branch office or hiring specialized professional, personal loan is your best bet.
For example, if you need to pay someone in cash, swiping your credit card ily may have expenses requiring you to pay mainly in cash, your vendors would prefer payment in cash (you e) A credit card comes in handy if you want to pay someone immediately, and don’t have cash on you. A flexi loan for chartered accountants, however, can be disbursed to your account in 24 hours and helps you achieve your short or long-term personal and professional goals.
2. Repayment Ease
Before opting for a loan, you need to figure out the repayment strategy. While a credit card offers you instant funds, it comes with a short repayment tenor. Usually, you have to pay the outstanding bill on your credit card by a month. Contrasting to this, a personal loan offers you a longer tenor. The repayment tenor for unsecured personal loans for CAs, ranges from 12-72 months. A wide tenor gives you the option to spread your EMIs according to your income, making repayment a hassle-free process. It gives you the peace of mind as far as repayment strategy is concerned. With online access, you can easily track your loan activity from anywhere within a few clicks.
3. Amount of Money
The amount of money approved in a personal loan for a CA is much higher than the credit limit offered by credit cards. If you apply for an unsecured CA loan, the loan amount can go up to as high as Rs.35 lakh. For secured loans, the amount can go up to Rs.2 crore. Procuring such a huge amount of money through a credit card is a tall order. The credit limit on a credit card depends on factors such as: – Gross monthly salary – Debt-burden ratio – Spending patterns – Credit policy of the lender For addressing your long-term goals, you need a huge amount of finance which can be easily. You can do so only done through personal loans.
Exclusive Suite of Loans for CAs
The exclusive suite of loans for CAs offers 4 loans, viz. personal loans, business loans, home loans and loans against property for CAs to cater to your personal and professional needs. -Meet major expenses like marriage, education costs, home renovation or vacation with a personal loan for CAs. -Fund expansion, or payroll costs or manage your firm’s cash flow with a business online payday loans Texas loan for CAs. -Get your dream home with an easy home loan for CAs -Fund any expensive purchase like acquiring new premises, set up a new branch office, etc. with loan against property for CAs.
4. Rate of Interest
Rate of interest is one of the prime considerations before choosing a finance option. A high-interest rate pushes up your expenses, affecting your monthly cash outflow. Credit cards are one of the most expensive means of financing. As soon as you withdraw cash from your credit card, it is charged at a very high rate of interest.
For point-of-sale payments, the interest rate remains high if the outstanding bill isn’t cleared by the due date. Flexi loans for chartered accountants has a more competitive and lower rate of interest than credit cards, thereby, making them more affordable. This ensures that the loan is not a financial burden, as you can easily gauge your EMIs every month.